(Reuters) – Gold steadied close to the $1,800 stage on Friday after a pointy fall within the earlier session, as worries over surging coronavirus circumstances and U.S.-China tensions underpinned its safe-haven enchantment, though a stronger greenback capped beneficial properties.
An worker weighs a 1kg gold bar at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018. Image taken October 4, 2018. REUTERS/Baz Ratner/Information
Spot gold was up 0.1% at $1,797.52 per ounce by 0248 GMT. U.S. gold futures eased 0.1% to $1,797.30.
“Gold is being held up resulting from rising geopolitical uncertainty, and a resurgence of coronavirus circumstances in america in addition to the world over. Nonetheless, a stronger USD has saved gold in examine,” Nationwide Australia Financial institution economist John Sharma stated.
The greenback held agency in opposition to its rivals, additionally benefiting from safe-haven inflows.
The USA reported at the least 70,000 new COVID-19 circumstances on Thursday, a report each day improve for the seventh time this month, in keeping with a Reuters tally.
New York Fed President John Williams stated it may take just a few years for the U.S. economic system to recuperate from the injury attributable to the pandemic, and it was not but the time to consider elevating rates of interest.
“The bull’s case for gold stays intact with actual charges low and suppressed and which might be capable to maintain the excessive value of gold. However with costs at yearly highs, shopping for the dips in all probability works out greatest for many merchants as a buying and selling technique,” Phillip Futures stated in a observe.
Decrease U.S. rates of interest improve the enchantment of non-yielding bullion.
Markets additionally saved a cautious eye on China’s commerce relations with the U.S., with Washington contemplating a ban on journey to america by all members of the Chinese language Communist Celebration and their households, an individual aware of the matter stated.
Elsewhere, palladium dropped 1.3% to $1,970.52 per ounce, whereas platinum was regular at $824.17.
Silver fell 0.6% to $19.05, however was on observe for a sixth consecutive weekly rise.
Reporting by Brijesh Patel in Bengaluru; Enhancing by Shailesh Kuber